2,000 Greater & Lesser Mysteries

home *** CD-ROM | disk | FTP | other *** search

/ 2,000 Greater & Lesser Mysteries / 2,000 Greater and Lesser Mysteries.iso / govern / fbi / mys00796.txt < prev next >

Wrap

Text File | 1994-06-10 | 13.3 KB | 265 lines

September 1990 MOTOR VEHICLE THEFT INVESTIGATIONS: EMERGING INTERNATIONAL TRENDS By Mary Ellen Beekman Special Agent, FBI, New York Field Office and Michael R. Daly Detective, New York City Police Department Early one morning in the Bronx, New York, a team of FBI Agents and detectives from the New York City Police Department (NYPD) watched as car thieves drove a 1987 Mercedes Benz into a 40-foot freight container. A National Crime Information Center (NCIC) check determined the car had been stolen the previous day, only a few blocks from where it was being loaded. Also, within the hour, a stolen Nissan Pathfinder was loaded into the same container. Almost immediately, members of the car theft ring drove the container to a port in New Jersey where it was to be loaded onto a vessel bound for a foreign port. Before the ship set sail, however, U.S. Customs officers intercepted the illegal cargo and the vehicles were returned to their owners. Unfortunately, most car thieves have more success transporting their cargo out of this country. And there are more vehicles being stolen than ever before. According to Uniform Crime Report (UCR) records compiled by the FBI, there were 1,432,916 vehicles stolen in the United States during 1988. This was an increase of 11.2 percent over 1987 figures, and preliminary records for 1989 indicate that rates are still increasing. (1) The emerging international character of the vehicle theft trade contributes to this increase, especially in areas with access to large port facilities. Selling stolen vehicles overseas, where eager buyers will often pay double the original purchase price for a quality automobile, is rapidly changing the domestic auto theft trade. Increasingly, vehicles stolen in the United States are being shipped out of the country where potential profits are far greater. As international trade increases and shipping terminals around the country are expanded, auto theft rings will have greater access to foreign ports. CAR THEFT TACTICS The above examples demonstrate the relative ease with which sophisticated thieves operate in the stolen vehicle trade. Both the Nissan Pathfinder and the Mercedes Benz already had been equipped with ignition keys and both were in driving condition. Information obtained from sources within the car theft ring indicated that Nissan Pathfinders and Toyota Forerunners were the vehicles of choice among this particular group, simply because they were easy to steal. Thieves need only to pop a door lock to obtain the ignition key code number. With this number and a portable key maker, they make a duplicate key and drive away with the vehicle within a relatively short period of time, reportedly 7 minutes or less. To steal a Mercedes Benz requires more risk and cunning on the thieves' part, because the value of the Mercedes decreases considerably if damaged. Therefore, it is necessary to steal the key along with the vehicle. This is done either by taking the car at gunpoint while the driver is stopped for a red light, or by deliberately bumping into the rear of the car. When the driver gets out to examine the damage, someone jumps in and flees with the vehicle, a tactic usually referred to as ``bump and run.'' A somewhat less risky tactic is to steal the Mercedes from a parking garage, either by stealing the keys or paying the attendant for them. SHIPPING STOLEN VEHICLES Once a vehicle has been stolen, the process of transporting it out of the country becomes complicated. For the most part, it requires the help of individuals with knowledge of the shipping business, usually known in the trade as freight forwarders. Freight forwarders get paid to make all the arrangements and prepare the necessary shipping documents. Since these individuals rarely see the items being shipped, they can be easily fooled into shipping illegal cargo. Consequently, the documents prepared by freight forwarders reflect incorrect information regarding the nature of the cargo. An early technique of car thieves was simply to provide incorrect vehicle identification numbers (VIN) to freight forwarders who, in turn, would list these on shipping documents. This was effective until Customs agents became familiar with the technique and began to seize increasing numbers of stolen vehicles at the docks. As a result, car thieves began to tell freight forwarders to list household goods or other items on the paperwork in order to further conceal the illegal shipments. EMERGING TRENDS Where stolen cars were once painted, transported across State lines, and delivered to either unsuspecting or unscrupulous used car dealerships, shipping stolen vehicles out of the country for sale is quickly emerging as the method of choice among car theft rings. The United States is becoming a supplier of stolen vehicles to third-world countries. In one Caribbean country, a survey conducted by various law enforcement agencies determined that approximately one out of every five vehicles on the docks awaiting Customs clearance showed clear signs that it had been stolen and shipped from the United States. For vehicles worth over $15,000, the rate increased to nearly four out of five. In a statement given by an individual convicted of interstate shipment of stolen vehicles, the thief claimed that almost every vehicle in his native country had been stolen and shipped from the United States. This individual also stated that these vehicles have visible signs of theft damage. Furthermore, he claimed that people in his country order specific types of vehicles to be stolen. Buyers are on waiting lists and will pay top dollar, often twice the original purchase price, for a quality vehicle. Finally, this individual reported that these rings are highly developed and would be very difficult to stop. DETERMINING THE REASONS It is not difficult to understand why shipping stolen vehicles overseas has become a preferred method of car theft rings. Automobiles have long been a scarce and coveted item in many countries. Wealthy citizens are willing to pay large sums for quality vehicles. In one taped conversation, an individual bragged that he could easily make $100,000 a month from shipping stolen vehicles. He described his outlays for expenses as follows: * $800 to $1,000 for each stolen vehicle, depending on the year and the type of vehicle, * $2,300 for the container and ocean freight (each container holds two vehicles), * $300 trucking expenses, and * $60 for the freight forwarder. A stolen vehicle will often net double its value overseas. Therefore, a vehicle valued at $20,000 commands $40,000 in the international market. Shipping two containers (4 vehicles) a month would net well over $100,000 (tax free). Another reason for the relatively unchecked growth of the auto theft trade is that it appears to be a ``victimless'' crime. There are few big losers. Most vehicle owners are reimbursed by their insurance companies, and although the insurance industry covers its losses by raising premiums, the cost is spread out so that it effects everyone only slightly. Moreover, the thief rarely goes to jail, and in many local jurisdictions, the crime goes virtually unpunished. One individual in New York City had been arrested five times for auto theft-related crimes, and on one occasion, had actually been apprehended while driving a stolen car. Yet, he has not spent any time in jail. He has paid fines totaling no more than $500, far less than he makes for one stolen vehicle. There are presumably many similar stories in the auto theft trade. The low apprehension, prosecution, and conviction rate of auto thieves make this crime a booming industry, with high profits and low risks. Geography can be an important factor in determining the frequency of auto theft. The proximity to a port where shipping lines provide access to foreign countries contributes to high automobile theft rates. In New York City alone, the rate of auto theft increased 25 percent in 1988. It is not only New York, Boston, and Philadelphia that report high theft rates but also Houston, Texas; Tampa, Florida; Newark, New Jersey; and other cities with large international shipping terminals. In fact, according to UCR statistics, 6 of the top 10 cities in vehicle theft are in New Jersey (Irvington, East Orange, Camden, Elizabeth, Trenton, and Newark), presumably because New Jersey has one of the largest ports in the country. (2) EMERGING COOPERATION: OPERATION TIERRA MAR In a joint investigation, code-named ``Operation Tierra Mar,'' the FBI, New York City Police Department, U.S. Customs Service, and the U.S. Attorney's Office penetrated several car theft rings with international ties. Customs agents scanned ship manifests, and from past experience, determined which containers had the highest probability of containing stolen vehicles. Only these containers were inspected. If stolen vehicles were found, they were offloaded and the container was shipped empty. In some of these empty containers, Custom agents would place a photograph of the vehicle so the individual waiting to receive the shipment would not be completely disappointed. More importantly, shipping the empty containers gave the FBI enough time to video tape additional loadings before the thieves became aware that their operation was discovered and changed their location. Capturing the loading of stolen vehicles on video was the single most important factor in convicting the people engaged in the scheme. As a result of the investigation, 11 individuals were convicted and 125 stolen vehicles were recovered. However, even this operation, one of the largest of its kind, did not put a dent in the illegal vehicle export trade. While investigators were completing their cases against these individuals, they knew that illegal exporters would be devising new methods of shipping stolen vehicles. NEW REGULATIONS, NEW TACTICS In May 1989, the U.S. Customs Service instituted new regulations regarding the exportation of vehicles from the United States. As a result of the new rules, an exporter attempting to ship a vehicle must provide an original or notarized copy of the certificate of title, or other documentation proving ownership, to the receiving clerk at the point of shipping at least 3 days prior to export. About a month after these new regulations took effect, illegal exporters devised a way to beat the new system. According to informed sources, legally purchased vehicles with legal certificates of title are being shipped out of the country in compliance with U.S. Customs regulations. When these vehicles arrive at a foreign port, the VIN plates are removed and sent back to the United States. These VIN plates are then placed on similar stolen vehicles. This process is dubbed ``born again,'' since these vehicles can now be shipped out of the country under the cover of a legal certificate of title. CONCLUSION While auto theft has long been a problem for law enforcement, the emerging international character of auto theft rings increases the threat of this crime, especially in areas near overseas shipping terminals. As international trade increases, new ports are constructed and existing ports expanded, more cities obtain access to international shipping lines. Unfortunately, this also enhances the opportunities open to auto theft rings for exporting their illegal cargo out of this country. As Operation Tierra Mar demonstrates, cooperation between Federal, State, and local agencies that have jurisdiction over the different phases of the illegal vehicle trade is the best way to combat this growing problem. Interagency cooperation will be increasingly important as law enforcement faces this emerging trend in the auto theft trade. FOOTNOTES (1) Uniform Crime Reporting Program, Federal Bureau of Investigation, Crime in the United States 1989 (Washington, D.C.: U.S. Government Printing Office). (2) Ibid.